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A NEW SURVEY has painted a gloomy picture of consumer confidence in Ireland.
The Government has signalled that although many aren’t feeling the benefits of Budget 2015, the effects will begin to kick in next month.
The latest Deloitte Consumer Tracker has revealed that 39% of consumers are less optimistic about their disposable income, while the same amount don’t expect it to change.
Of the 1000 adults surveyed, a minority of 17% said they are more optimistic.
This drain on income is largely down to the increasing cost of essential items, the survey suggested, which means people are still cutting back on socialising, clothing, and other discretionary items.
Significant purchases are also off the table for most, although the number of people considering purchasing a new car or house has increased slightly (10% to 15% and 5% to 7% respectively).
Over the past six months, respondents said they have spent more on utility bills (45%), transport (33%), healthcare (30%) and housing (22%) over the past six months, and a similar pattern emerges when predicting what will come in future.
“Irish consumers remain cautious, as evidenced by the high level of savings,” Kevin Sheehan, head of consumer business at Deloitte, said, noting that 48% pay money into a savings account each month.
“While the findings show that many consumers’ financial situations have stayed the same over the last number of months, for those that have experienced a change in circumstances, it is more likely to have gotten worse than better.
While marginal increases in spend are anticipated, these are mostly likely to be on essential items, with little left for discretionary items.
The survey also examined the influence of brands and promotional offers on consumers, revealing that 49% do not believe that sales offering real savings on essential items.
However, half of respondents said that, aside from groceries and cosmetics, they would be likely to switch brand to avail of an offer.
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At least 3 carbon tax rises, barrel of oil lowest ever but very little reduction at pump or for home heating. supermarkets getting dearer every week. esb price increases. Water tax. job bridge is the new profession and we are suppose to have confidence.yea right
Petrol has dropped in price from €1.65 per litre to €1.40 per litre. No song and dance in the media about that of course! You see it is good news
1.40 compared to 1.65 isn’t a whole lot of a drop if the person is on Jobbridge or the minimum wage. I wonder how many of the 81k jobs that the government have created/ manufactured have been massaged with Tús, Ce Schemes, Gateway, Jobbridge, and various other ex Fas related courses?
And how many are still employed today, or is it all just Science, IT and Finance job creation these days and flip the rest?
What Margaret is saying is that Jobbridge is the new norm. Just in case you didn’t pick up on that…
Yet if it went from 1.65 to 1.80 it’d be called an astronomical rise. I got petrol for 1.34 yesterday. Was pleasantly surprised to see it. The evidnce of recovery is undeniable. It’ll be a while before it’s felt in people’s pockets bit its certainly happening.
See my vest if you got petrol for 1.34 I’d be suspicious if I were you.Two of my friends cars have been wrote off due to ‘cheap petrol’.
The drop in fuel costs has nothing whatsoever to do with this government. It is linked to the cost of crude oil dropping by almost 40%.
Suit this government to get at oil companies to pass this reduction on to the consumer.. But then their duty/ vat would suffer so they turn a blind eye to this rip off again.
Read recently that cost of crude now at a level at which we were being charged €1.10 approx per litre at pump several yrs ago.
@ Norman west of Ireland is generally cheaper than the capital. the petrol stretching issue is hitting reputable businesses as well as the stand alone stations. I always go to the same place as I got hit with dirty fuel in the past. Luckily it didn’t destroy the car but it did cost a few bob to fix.
See my vest I’m not being smart with you honestly, just be careful or go to a garage you trust.
Irrespective of fuel price drop public transport fares went up on 1st December – when can we now expect them to be significantly reduced?
Original… the subsidy provided by government was cut,so fares won’t be dropping.
Got fuel for 1.309 a litre in north cork in topaz garage. Cheapest I’ve seen in a long time.
Tax us to death and we have nothing left to spend
A little simplistic. But basically true. And the alternative would tax us more.
Cathal just wondering can you see the future?any chance of Saturday ‘s lotto numbers.
Then they tax you on your death. Win Win for them.
Won’t be paying for water,so that’s one item that won’t be a ‘drain’ on my finances.Sadly a lot of other things will be.
Sure isn’t water a mere “discretionary” spend! We can all drastically cut back on being hygienic, washing ourselves and cleaning our houses.
Norman we have to pay our taxes if we don’t pay them then who will?
I am trying to say this with a straight face because of the article I have embedded….it makes you think about the people than are running our country and how they have the cheek to tell us such things when they can’t run a small firm let alone manage an entire economy!!!
Yogi I do pay my taxes,provision for water is already allowed for in taxation.
I don’t pay for anything else twice so why would I make an exception for water.
Yogi we will be told that the lady tds affair is entirely private and has no bearing on anything now run along nothing to see.
I totally agree Norman. We are now paying it twice because the government when it mismanages our finances can keep returning to the people and raise taxes. People on lower incomes got a 100 euro reduction in IW that won;t be paid until late 2015…if ever and e60 per child in C. Allowances. Higher earners got a e700 tax cut plus the same e60 per child that those less well off got. It is disgusting this country when you sit down and crunch the figures.
Clearly this smug FG td wasn’t able to manage her affairs….but somehow magically…like Hansel and Gretel or Snow White the debt just disappeared in her company….Was there a write off for the boys? The real motion of confidence would have been to go to the people for a vote. Rather than the “Motion of Arrogance in the Government” tabled by an overweight nobody.
Taxed to death already,this shower just dont know when to STOP
People don’t need surveys to tell them things are worse, we already know and feel the effects.
To believe in the “recovery” and trickle down economics is like an amputee waiting for their limb to grow back.
And lets not forget the over 850 families that are without their homes this Christmas, recovery my ass!!
Electricity and gas prices seem to have increased this year.
What % of these bills relate to the “cost” of the electricity and gas apart from other charges, levies, meter rent and VAT?
I bought coal this week at higher prices than my last purchase When I enquires about the reason for the increase I was informed that the increase related to an increase in the Governments Carbon Tax.
can anybody confirm if this is correct?
seems to be the less you do in this country the better you are treated. Work hard they tax on practically every single thing. Dont work and they give you every. something seriously wrong with our system
The survey tells us how people feel. The reality is that inflation is pretty much at zero. Prices haven’t increased in the last few years (and are for many things cheaper – see petrol, restaurants, clothes etc). The price of home heating, petrol and even electricity will fall in the next year (as the price of oil has halved).
It’s similar with the “tax us to death” mantra given by the commenters here – in reality Ireland is (in european terms) a low tax country – one reason why services are so poor. (Ireland’s tax revenue is about 30% of GDP, France is about 42%)
http://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP
Perhaps wages have dropped substantially and prices either stayed the same or dropped at a slower pace than wage cuts and tax rises?
The survey is about people’s perception of rising prices. It doesn’t mention wages. In any case, most people with jobs haven’t had a pay cut/tax rise in the last year. Inflation is 0.3% in the latest figures.
David as president of the Trinity branch of YFG (unless you’ve resigned ) I can’t read anything from you in an impartial manner.He would say that springs to mind.
I see the fg troops are out early today denying how it really is.. there are a lot of people really hurting out there but this government don’t give a crap about them only want to tax them more very similar to thacthers conservatives fcuk the poor as long as big business is ok
David our so called civil service and politicians belong to some of the highest paid in the World. Medical costs in this country are astronomical. We in this country get very little in return for the tax we pay. Put simply the establishment has feathered its nest and the people are not invited.
David yes the article says nothing of the sort I agree. That is why made the suggestion that falling wages had an impact on why people felt like prices were increasing but in the grand scheme of things were dropping slowly. Norm said you went to Trinity. Do they teach you how to read the question until you adequately understand it before attempting to answer it?
In most other institutions they do…
No shit sherlock!!
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